Opinion: No Indonesian Welcome Mat for …

On Sept.1 and 2, Managing Director Christine Lagarde and the IMF are scheduled to visit ndonesia. While President Joko Widodo and some of his ministers have already rolled out the welcome mat for them, it should be put back in the closet. This is an organization that in part was behind the Indonesian economic crisis in May 1998, with no apologies. According to a monograph written by economist Stephen Hanke at Johns Hopkins University, a special economic advisor to then President Suharto, he recommended the fast establishment of a currency board (or linking the rupiah to the dollar) at the time to stabilize a falling rupiah. When the markets got wind of this, the rupiah, which at that time was plumbing all time lows (like today), immediately rose in value.

Read →

Comments on this post are for paying subscribers